.
Finally, Curtis (2001) adds that the concept of errors and fundamental errors were also introduced, together with specific rules applying where errors were acknowledged. .
Curtis (2001) explains this standard sets out disclosure that is required in financial reports that are not already covered by specific accounting standards. The standard outlines general formatting requirements of financial reports and introduces some new disclosures. Curtis (2001) highlights each disclosure that includes: number of employees, the legal form of the entity, who the parent and ultimate parents entities are, dividends and attaching franking credits, economic dependencies and a narrative discussion on material changes to comparative information. .
AASB 1040 Statement of Financial Position .
Until recently, Curtis (2001) mentions that the presentation of assets and liabilities had been very unyielding. More recently, the format has been made more flexible and is dependant upon the operations of the entity and, according to Curtis (2001), the most useful source for presentation of information to the users of the financial reports. .
This standard requires assets to be classified in the Statement of Financial Position, (replacing the balance sheet) according to their nature or function. Curtis (2001) highlights that classification may now be based on liquidity, marketability, physical characteristics, expected timing of realisation and subsequent cash flows, or the purpose of holding the asset. .
Finally, Curtis (2001) adds that additional information is required to be disclosed in respect of the rights attaching to equity entitlements, for example shares, and options.
SAC 3 identifies the characteristics that financial information should have to meet the objectives in SAC 2 whereby there are dependant users of financial reports. As SAC 3 suggests, GPFR's should be relevant and reliable so the users of the reports can get a true and fair view of the reporting entity.